service tax on sub contractor

[Guest]

wts the taxability in case of sub contractor if the main contractor is engaged in the work of railways, is it exempt or its taxable ,

any new amendments is there

please guide

Manoj saparia

[ajay singh]

Please refer the article for any clarification on this link https://www.taxtmi.com/article/detailed?id=28

[YAGAY andSUN]

Sub contractor is not exemtped from the liability of service tax.

[CA Rachit Agarwal]

If the work is related to the Infrastructure development then the Service Tax will not be applicable.

[KASTURI SETHI]

UPDATION

In terms of Notification No.25/12-ST dated 20.6.12 (effective from 1.7.12) (S.No.29(h) as amended vide Notification No.6/15-ST dated 1.3.15 reads as under:

"sub-contractor providing services by way of works contract to another contractor providing works contract service which are exempt." After 1.7.12, if services provided by the (main) contractor are exempt, the services of sub-contractor are also exempt.

AI Summary

Service tax on subcontractor: subcontractor services are exempt when the main contractor's works-contract services are exempt. Taxability of a sub-contractor's works-contract services follows the tax status of the main contractor: if the main contractor's works-contract services are exempt (including certain infrastructure works), then the sub-contractor's services provided to that contractor are also exempt under the Notification-based rule.